Grab Holdings Limited (GRAB): A Bull Case Theory

We came across a bullish thesis on Grab Holdings Limited on Chit Chat Stock’s Substack by Ryan Henderson. In this article, we will summarize the bulls’ thesis on GRAB. Grab Holdings Limited's share was trading at $5.36 as of July 25^th. GRAB’s trailing and forward P/E were 536.00 and 90.09, respectively according to Yahoo Finance.

Grab, founded in 2012 by Anthony Tan and Tan Hooi Ling as MyTeksi during a Harvard Business School competition, started by tackling Southeast Asia’s taxi safety issues with a GPS-enabled ride-hailing app. Rebranded to Grab in 2016, the company has evolved into a super-app combining mobility, delivery, and financial services. Mobility remains its largest earnings driver, with a fleet strategy that promotes electric vehicles, boosts supply, and supports 55% segment EBITDA margins.

Grab dominates most Southeast Asian markets with shares exceeding 85% in Malaysia, the Philippines, and Thailand, while splitting Indonesia 50/50 with Gojek amid acquisition rumors. Deliveries, now Grab’s largest revenue line, has grown rapidly, reaching 14% EBITDA margins after turning profitable, supported by merchant financing, grocery acquisitions like Jaya Grocery, and growing advertising revenues.

Financial services, anchored by GrabPay, have expanded into digital banking and lending, with deposits tripling year-over-year to $1.4 billion, though the fast-growing $566 million loan portfolio raises credit risk concerns. Grab’s 2018 acquisition of Uber’s Southeast Asian operations cemented its market dominance and added GrabFood, with Uber now its largest outside shareholder at 13%.

The company, led by founder-CEO Anthony Tan, maintains a long-term growth focus, emphasizing scale over short-term margins, evidenced by initiatives like Saver Rides, which now account for a third of delivery and a quarter of mobility rides. Trading at an $14.5 billion EV, Grab’s Mobility and Deliveries alone could generate $1.7 billion in EBITDA by 2029, implying an 8.5x multiple, offering meaningful upside if execution remains strong despite lingering concerns over its banking ambitions.

Previously, we covered a bullish thesis on Grab Holdings Limited (GRAB) by GabGrowth in June 2025, highlighting undervalued financial metrics, a super-app moat, and a potential Gojek acquisition. The stock has appreciated about 7.5% as fundamentals strengthened. The thesis still stands on cash-backed valuation and market leadership. Ryan Henderson shares a similar view but emphasizes scale-driven EBITDA growth and fintech expansion.

Grab Holdings Limited is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held GRAB at the end of the first quarter which was 57 in the previous quarter. While we acknowledge the potential of GRAB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.